The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a two-year scheme to support the replacement of old trucks and buses in the Delhi-NCR region, in a bid to reduce air pollution and encourage cleaner mobility.
The programme will be implemented through the National Capital Region Planning Board under the Ministry of Housing and Urban Affairs, with the ministries of road transport and highways, and petroleum and natural gas handling execution, according to the government.
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Union Cabinet has approved a two-year scheme aimed at reducing air pollution in the Delhi–NCR region and promoting cleaner mobility.
— Ministry of Information and Broadcasting (@MIB_India) June 3, 2026
With a total financial outlay of ₹9,585 crore, the scheme seeks to incentivise owners of trucks and buses registered in the Delhi–NCR region… pic.twitter.com/jhiTUqSTsy
A substantial wager on cleaner transport
The scheme carries a total financial outlay of ₹9,585 crore, including ₹5,041 crore from the Centre and an estimated ₹1,601 crore in tax concessions from participating states, the PIB release said.
It will cover truck and bus owners registered in Delhi, Haryana, Rajasthan and Uttar Pradesh who operate vehicles meeting BS-IV or earlier emission norms.
Those owners will be encouraged to replace their vehicles with BS-VI or stricter emission-compliant models, or with electric vehicles.
Carrots before the convoy
Under the package, the Centre will provide 5% interest subvention on loans for five years, monthly fuel vouchers of up to ₹4,800 depending on vehicle category, and lump-sum benefits for EV purchases or certificate-of-deposit trading.
State governments will waive registration fees and offer up to 100% motor vehicle tax concessions for new vehicles and 50% for used vehicles for 10 years.
Participating auto manufacturers will also offer 8% discounts on ex-showroom prices.
#Cabinet approves Scheme for replacement of old trucks and buses registered in Delhi-NCR area to BS-IV/ EV vehicles
— PIB India (@PIB_India) June 3, 2026
The Scheme will benefit approximately 1.91 lakh trucks and 16,329 buses in Delhi-NCR. This will significantly affect the pollution in Delhi in medium as well as… pic.twitter.com/vXxJUOJWKH
The retirement plan for ageing vehicles
The scheme sets different rules depending on the age of the vehicle.
BS-III and older vehicles will have to be scrapped at registered scrapping facilities, while BS-IV vehicles may either be scrapped or sold outside NCR in non-NCAP cities and towns.
In Delhi, light goods vehicles bought under the scheme must be electric, while buses must be BS-VI CNG or electric only.
Government vehicles are excluded from the programme. The benefits from the Centre will continue for five years from the date of registration of the new vehicle, even though enrolment under the scheme will run for two years.
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The Union Cabinet has approved a scheme that will work towards reducing pollution in the Delhi-NCR region and promote cleaner mobility. The scheme will improve air quality, support sustainable transport and benefit vehicle owners. https://t.co/KFBmkJiIWY
— Narendra Modi (@narendramodi) June 3, 2026
A nod of approval
Prime Minister Narendra Modi also welcomed the Cabinet decision in a post on X, saying, “The scheme will improve air quality, support sustainable transport and benefit vehicle owners.”
Union minister Ashwini Vaishnaw said the measures could create the possibility of replacing over 200,000 vehicles, while clean transport experts called the move a welcome step in tackling high emissions from commercial fleets.
